I think your best case scenario provides enough cushion, but I wouldn't feel comfortable without that!

On the flip side, I feel like I can't let my cash flow build up a nice cushion and start to get a good ROI.

Maybe that will move it, I don't know.I have enough cash and short term investments to buy another section 8 outright, but I would never want to not have the cash cushion, so I'm not comfortable even contemplating that.

We have ample capital, and plan to take a substantial "first loss" position in all properties, bearing losses to cushion the lenders.Also, when you say 65% of "purchase+rehab", for a reseller like yourselves, are you talking about MemphisInvest's cost, or are you talking about the higher purchase price of your ultimate buyer, reflecting MemphisInvest's reasoanble profit margin on the re-sell?

Just hope i've given myself enough cushion for them.Anyway details as follows:2bed/1bath 1100 sq ft (as of now)SFH.Im making bid for 50,000 w/22,000 in improvement costs.

Get your best budget and build in a cushion for unforeseen expenses that you didn't anticipate.

.- Build in enough cushion for 'operating costs.'

That allowed me to buy, fix, sell, and use the equity to do the same but with a larger property.So I hate to answer your question with an answer that doesn't really apply -- but if you can get some money in the game (shake the couch cushions, or as friends/family) you have many more options.The other thing is to work hard and birddog properties for local buyers.

Its a lot easier to borrow money and run projects when you have a bit of a cushion if/when something goes wrong.

Should close in late MarchEstimated repair: $30-40K (Kitchen, two baths, paint, flooring and minor roof repair)- I have a cushion of around $10KRehab time: 2-3 monthsARV $490-510.4/2 1600 sq ft in Livermore, CA .